Fairfield Residential Acquires the Apartments of Phase II of the Village at Totem Lake for $42.7MM

On Wednesday, December 13th, San Diego-based Fairfield Residential purchased the upper mall portion, or Phase II of the under-construction Village at Totem Lake Project in Kirkland, for $42.7 million, according to public records filed with King County. The seller of the asset was El Segundo, California-based CenterCal Properties LLC, a developer of mixed-use and retail properties throughout the Western U.S.

The property is a mixed-use development located at 12560-12632 120th Ave. NE, that will eventually include 44,197 square feet of retail and restaurant space, a 35,000 square foot luxury movie theater and 650 luxury apartments. The project will also feature a public plaza, which will serve as the entrance to the movie theater, located within the development. The mixed-use development is scheduled to open in late 2019 or early 2020, according to the web site for the property.

The upper mall portion of the project is the second phase of the Village at Totem Lake development, part of a larger 400,000 square foot retail and restaurant development that will be surrounded by housing and other mixed-uses.

According to Rick Beason, vice president of development with CenterCal Properties, the idea is to transform the old mall into a thriving hub of activity in Kirkland. “We are taking an old mall and turning it into lifestyle Village. Malls are enclosed buildings and now it will be an open Village with mixed uses, outdoor seating, walking and cycling paths and more,” Beason said.

Ultimately, the hope is that the Totem Lake development will become a focal point for the surrounding community. “We are creating a gathering place for the community, a destination to live, eat, work, play and building another hub for downtown Kirkland,” he added.

The redevelopment project contains many distinct individual parcels and buildings that will ultimately become a city-within-a-city. “From a big picture, we’re building a small city. It is helpful to understand this is a “Village” with a series of parcels and buildings that are individual projects in themselves. It’s not just one project,” he said.

The location of The Village at Totem Lake is one of it’s main assets, according to the web site, set in a city that has a “strong sense of community,” the property offers residents of Kirkland a place where they can live, shop and dine. Located along Totem Lake Blvd NE., which runs parallel to Interstate-405, the property is less than half a mile from access to the prominent transit corridor. Additionally, the property is four miles to the north of Kirkland and roughly five miles to the Northwest of downtown Redmond.

CenterCal Properties selected Fairfield among a number of leading residential developers. Fairfield Residential will design, build, lease and operate the residential component. Upon completion, Fairfield Residential will have constructed approximately 650 apartments and roughly 85,000-95,000 square feet of retail/theater/restaurant space, which will then be transferred back to CenterCal Properties to operate and complement the overall project.

Fairfield Residential was founded in 1985 and manages 44,000 units nationwide across a wide variety of asset types including luxury new construction and renovated apartment homes in urban and suburban infill neighborhoods, as well as tax credit affordable housing properties, according to the company’s web site. The company provides a wide array of multifamily real estate services including development, construction, renovation, acquisition and property management, according to its web site. In the Puget Sound region, Fairfield has assets in Everett, Federal Way and Renton.

Founded in 2004, CenterCal Properties LLC develops and acquires retail assets throughout the Western U.S., with 150 employees across 12 offices in core markets including Oregon, Idaho, Utah, California and Washington, according to the company’s web site. Concerning the development of retail projects in particular, the company emphasizes the ability to thoroughly understand the requirements of its tenants to effectively communicate the project vision, according to its web site. Some of the company’s other assets in the Puget Sound region include The Terminal at Ballard, a 39,000 square foot neighborhood center in Seattle’s Ballard neighborhood, and The Trails at Silverdale, a 226,000 square foot retail mall in Silverdale, Washington.